Telefonica Net Income vs. Current Valuation
| TEF Stock | USD 4.58 0.11 2.46% |
Net Loss | First Reported 1994-03-31 | Previous Quarter -2.2 B | Current Value 532 M | Quarterly Volatility 1.1 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.77 | 0.6926 |
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| Operating Profit Margin | 0.0606 | 0.0638 |
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For Telefonica profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Telefonica to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Telefonica SA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Telefonica's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Telefonica SA ADR over time as well as its relative position and ranking within its peers.
Telefonica |
Is Telefonica's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Telefonica. If investors know Telefonica will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Telefonica listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.013 | Earnings Share (0.18) | Revenue Per Share 7.204 | Quarterly Revenue Growth 0.009 | Return On Assets 0.0143 |
The market value of Telefonica SA ADR is measured differently than its book value, which is the value of Telefonica that is recorded on the company's balance sheet. Investors also form their own opinion of Telefonica's value that differs from its market value or its book value, called intrinsic value, which is Telefonica's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Telefonica's market value can be influenced by many factors that don't directly affect Telefonica's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Telefonica's value and its price as these two are different measures arrived at by different means. Investors typically determine if Telefonica is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Telefonica's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Telefonica SA ADR Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Telefonica's current stock value. Our valuation model uses many indicators to compare Telefonica value to that of its competitors to determine the firm's financial worth. Telefonica SA ADR is rated below average in net income category among related companies. It is rated below average in current valuation category among related companies . At this time, Telefonica's Net Loss is most likely to decrease significantly in the upcoming years.Comparative valuation analysis is a catch-all model that can be used if you cannot value Telefonica by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Telefonica's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Telefonica's earnings, one of the primary drivers of an investment's value.Telefonica Current Valuation vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Telefonica |
| = | (1.15 B) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Telefonica |
| = | 69.54 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Telefonica Current Valuation vs Competition
Telefonica SA ADR is rated below average in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Communication Services industry is at this time estimated at about 76.64 Trillion. Telefonica adds roughly 69.54 Billion in current valuation claiming only tiny portion of stocks in Communication Services industry.
Telefonica Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Telefonica, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Telefonica will eventually generate negative long term returns. The profitability progress is the general direction of Telefonica's change in net profit over the period of time. It can combine multiple indicators of Telefonica, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -19.3 B | -18.3 B | |
| Operating Income | 2.6 B | 2.5 B | |
| Income Before Tax | -1.5 B | -1.4 B | |
| Total Other Income Expense Net | -2 B | -1.9 B | |
| Net Loss | -1.1 B | -1.1 B | |
| Income Tax Expense | -899 M | -854 M | |
| Net Income Applicable To Common Shares | 1.6 B | 1.5 B | |
| Net Loss | -574 M | -545.3 M | |
| Interest Income | 1.1 B | 1.1 B | |
| Non Operating Income Net Other | 0.00 | 0.00 | |
| Net Interest Income | -1.9 B | -2 B | |
| Change To Netincome | 860.4 M | 887.6 M | |
| Net Loss | (0.16) | (0.15) | |
| Income Quality | (10.16) | (9.66) | |
| Net Income Per E B T | 0.61 | 0.78 |
Telefonica Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Telefonica. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Telefonica position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Telefonica's important profitability drivers and their relationship over time.
Use Telefonica in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Telefonica position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Telefonica will appreciate offsetting losses from the drop in the long position's value.Telefonica Pair Trading
Telefonica SA ADR Pair Trading Analysis
The ability to find closely correlated positions to Telefonica could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Telefonica when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Telefonica - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Telefonica SA ADR to buy it.
The correlation of Telefonica is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Telefonica moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Telefonica SA ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Telefonica can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Telefonica position
In addition to having Telefonica in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Manufacturing Thematic Idea Now
Manufacturing
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Manufacturing Theme or any other thematic opportunities.
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Complementary Tools for Telefonica Stock analysis
When running Telefonica's price analysis, check to measure Telefonica's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Telefonica is operating at the current time. Most of Telefonica's value examination focuses on studying past and present price action to predict the probability of Telefonica's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Telefonica's price. Additionally, you may evaluate how the addition of Telefonica to your portfolios can decrease your overall portfolio volatility.
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To fully project Telefonica's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Telefonica SA ADR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Telefonica's income statement, its balance sheet, and the statement of cash flows.